How to File Your Tax Return in Japan as a Freelancer

What Is 確定申告 (Kakutei Shinkoku)?

If you are a freelancer or self-employed worker in Japan, you are required to file an annual tax return known as 確定申告 (kakutei shinkoku). This is the process of reporting your income and expenses to the National Tax Agency (NTA) and settling any outstanding income tax.

Unlike salaried employees whose employers handle tax adjustments through year-end adjustment (年末調整), freelancers must calculate and report their own taxes. This applies to anyone earning income outside of standard employment, including side jobs, contract work, and business income.

Key Deadlines You Cannot Miss

The filing period for the previous year's income runs from February 16 to March 15 each year. If March 15 falls on a weekend, the deadline shifts to the next business day. Missing this deadline can result in late filing penalties (無申告加算税) and interest charges (延滞税).

February 16: Filing period opens

March 15: Filing deadline for income tax

March 31: Deadline for consumption tax (if applicable)

Payment due: Same as filing deadline, unless you opt for installment payments

Blue Filing vs White Filing

Japan offers two types of tax return formats for self-employed individuals:

Blue Filing (青色申告)

Blue filing offers significant tax advantages but requires more detailed bookkeeping:

Special deduction of up to 650,000 yen from your business income

Ability to carry forward losses for up to 3 years

Depreciation benefits for business assets

Requires double-entry bookkeeping and a balance sheet

Must pre-register with your local tax office

White Filing (白色申告)

White filing is simpler but offers fewer benefits:

No special deductions

Simple single-entry bookkeeping is sufficient

No pre-registration required

Better for those with minimal business expenses

For most freelancers earning a meaningful income, blue filing is strongly recommended because the 650,000 yen deduction alone can save you over 100,000 yen in taxes.

Documents You Will Need

Before you start filing, gather these essential documents:

My Number card (マイナンバーカード) or notification card

Income records: payment statements (支払調書) from all clients

Expense receipts: organized by category (office supplies, transportation, communication, etc.)

Bank statements: showing business-related transactions

Health insurance payment records (国民健康保険)

Pension payment records (国民年金)

Previous year's tax return (if applicable)

How to File: Step by Step

Step 1: Calculate Your Income

Add up all business income received during the tax year (January 1 through December 31). Remember to include income before withholding tax was deducted.

Step 2: Tally Your Expenses

Organize expenses into categories recognized by the NTA:

Rent for office or coworking space (地代家賃)

Utilities related to business (水道光熱費)

Communication costs like phone and internet (通信費)

Transportation (旅費交通費)

Supplies and equipment (消耗品費)

Professional development and books (研修費)

Step 3: Apply Deductions

Common deductions include social insurance premiums (health insurance, pension), life insurance premiums, earthquake insurance, and the blue filing special deduction.

Step 4: Submit Your Return

You can file in three ways:

e-Tax (online via the NTA website) — most convenient, requires My Number card

In person at your local tax office

By mail to your jurisdictional tax office

Step 5: Pay or Receive Your Refund

If you owe additional tax, pay by the deadline. If you had excess withholding tax deducted by clients, you will receive a refund deposited into your bank account within 1 to 2 months.

Tips for Freelancers in Japan

Keep receipts for everything business-related throughout the year

Use accounting software to maintain proper books (JapanRita can help track your income and expenses)

Consider registering for blue filing if you have not already

Consult a tax accountant (税理士) for complex situations

File early to avoid the last-minute rush at tax offices

Filing taxes in Japan as a freelancer does not have to be overwhelming. With proper preparation and organized records, the process becomes straightforward. Start early, keep good records, and take advantage of all available deductions.

Frequently Asked Questions

When is the deadline for filing taxes in Japan?

The deadline for filing your 確定申告 is usually March 15th of the following year. For example, for income earned in 2025, you must file by March 15, 2026.

Do I need to file taxes if I earn less than ¥200,000 from side income?

If your only income is from an employer who does year-end adjustment (年末調整), and your side income is under ¥200,000, you may not need to file. However, if you're a freelancer, you must file regardless of income amount.

Can JapanRita help me file my taxes?

JapanRita helps you organize your income, expenses, and deductions throughout the year. While we don't submit tax returns directly, we prepare all the numbers you need for your 確定申告.